Union Company Uses a Standard Cost Accounting System What Was the Total Amount of Overhead Applied to Work

question 160

Multiple Choice

Union Company uses a standard cost accounting system.The following overhead costs and production data are available for August:
$\begin{array}{|l|r|}\hline \text { Standard Fixed Overhead Rate } & \$ 1.00 \text { per hour } \\\hline \text { Standard Variable Overhead Rate } & \$ 4.00 \text { per hour } \\\hline \text { Denominator Activity } & 40,000 \text { hours } \\\hline \text { Actual Hours } & 39,500 \text { hours } \\\hline \text { Standard Hours Allowed for Output } & 39,000 \text { hours } \\\hline \text { Overapplied Overhead } & \$ 2,000 \\\hline\end{array}$
What was the total amount of overhead applied to work in process in August?

• A) $195,000.
• B) $197,000.
• C) $197,500.
• D) $199,500.

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Definitions:

Anecdotal

Pertains to personal accounts or observations that are usually informal or unofficial in nature.

Duration

The length of time that something continues or exists.

Placebo Effect

A phenomenon in which a person experiences a perceived improvement in their condition due to their expectations or beliefs, rather than the effect of an active medical treatment.

False Treatment Interaction Effect

An erroneous conclusion that the effect of a treatment varies depending on different settings or groups, often due to methodological flaws.